Investor Relations TO: The Investment Community FROM: Citigroup Investor Relations DATE: January 20, 2006 RE: Reformatted Global Consumer Group Disclosure In September 2005, Citigroup announced the reorganization of the Global Consumer Group. Specifically, North America Cards, Consumer Finance and Retail Banking have been reorganized into U.S. Cards, Retail Distribution, Consumer Lending and Commercial Business. In addition, Mexico consumer results, which were previously recorded in North America, are now recorded in International. The attached fourth quarter 2005 quarterly financial data supplement presents the results of the Global Consumer Group under the new organization structure. Below is a summary description of each of the reorganized U.S. Consumer businesses. U.S. Cards The U.S. Cards business has effectively remained the same; however as referenced above, Mexico results are now reported in International Cards. Further, the U.S. Cards income statement presents all information on a GAAP basis, and therefore no longer reflects adjustments to Total Revenues and Net Credit Losses related to securitization activities. Performance metrics for the entire credit card portfolio, both held and securitized, are included under “Key Indicators – Managed Basis.” U.S. Retail Distribution The U.S. Retail Distribution business is comprised of Citibank branches, CitiFinancial branches and Primerica Financial Services. Citibank branches provide personal and small business banking products and services; CitiFinancial branches provide consumer loan products and services; and Primerica Financial Services provides financial products and services through independent agents. U.S. Consumer Lending U.S. Consumer Lending provides consumer loans through various distribution channels. Loan products are grouped into three categories: • Real Estate Lending – Provides mortgage and home equity lending. Loans are originated directly with consumers via the telephone, internet, Smith Barney, Citibank branches and Primerica agents, and indirectly through mortgage brokers, banks and mortgage companies.
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Investor Relations - · PDF fileInvestor Relations TO: The Investment Community FROM: Citigroup Investor Relations DATE: January 20, 2006 RE: Reformatted Global Consumer Group Disclosure
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Investor Relations TO: The Investment Community FROM: Citigroup Investor Relations DATE: January 20, 2006 RE: Reformatted Global Consumer Group Disclosure In September 2005, Citigroup announced the reorganization of the Global Consumer Group. Specifically, North America Cards, Consumer Finance and Retail Banking have been reorganized into U.S. Cards, Retail Distribution, Consumer Lending and Commercial Business. In addition, Mexico consumer results, which were previously recorded in North America, are now recorded in International. The attached fourth quarter 2005 quarterly financial data supplement presents the results of the Global Consumer Group under the new organization structure. Below is a summary description of each of the reorganized U.S. Consumer businesses. U.S. Cards The U.S. Cards business has effectively remained the same; however as referenced above, Mexico results are now reported in International Cards. Further, the U.S. Cards income statement presents all information on a GAAP basis, and therefore no longer reflects adjustments to Total Revenues and Net Credit Losses related to securitization activities. Performance metrics for the entire credit card portfolio, both held and securitized, are included under “Key Indicators – Managed Basis.” U.S. Retail Distribution The U.S. Retail Distribution business is comprised of Citibank branches, CitiFinancial branches and Primerica Financial Services. Citibank branches provide personal and small business banking products and services; CitiFinancial branches provide consumer loan products and services; and Primerica Financial Services provides financial products and services through independent agents. U.S. Consumer Lending U.S. Consumer Lending provides consumer loans through various distribution channels. Loan products are grouped into three categories:
• Real Estate Lending – Provides mortgage and home equity lending. Loans are originated directly with consumers via the telephone, internet, Smith Barney, Citibank branches and Primerica agents, and indirectly through mortgage brokers, banks and mortgage companies.
• Student Loans – Provides educational loans to students. Loans are typically sourced through financial aid offices at educational institutions. Also provides government loan origination and servicing capabilities to student loan providers, including academic and financial institutions.
• Auto – Provides automobile financing through franchised and independent auto dealers, auto manufacturers, and the internet.
U.S. Commercial Business U.S. Commercial Business provides leasing, banking and real estate products and services to small and medium-sized enterprises across a broad range of industries. Commercial Business has effectively remained the same. Results for Commercial Business were previously reported as a separate line in North America Retail Banking. Mapping From Old Disclosure to New Disclosure Attached is a diagram mapping old disclosure to the new disclosure for the Global Consumer Group. Please do not hesitate to contact Citigroup Investor Relations if you have any questions at (212) 559-2718. Thank you.
N.A. Cards(1) U.S., Canada, Puerto Rico
Mexico*
N.A. Retail Banking(2) Retail Distribution(3) Commercial Business(4) Prime Home Finance(5) Student Loans(6) Primerica Financial Services
Mexico*
N.A. Consumer Finance(7) CitiFinancial Branches(8) CitiFinancial Auto(9) Home Equity
Mexico*
U.S. Cards(1) U.S., Canada, Puerto Rico
U.S. Retail Distribution(2) Citibank Branches(7) CitiFinancial Branches(6) Primerica Financial Services
U.S. Consumer Lending(4,9) Real Estate(8) Auto(5) Student Loans
*Mexico is now reported in International Consumer results.
Prior Disclosure New Disclosure
(3) U.S. Commercial Business
Quarterly Financial Data SupplementGlobal Consumer Group
International Cards• The same, plus Mexico
International Cards
International Retail Banking
International Consumer Finance
International Retail Banking• The same, plus Mexico
International Consumer Finance• The same, plus Mexico• Additional regional disclosure
N.A. Cards(1) U.S., Canada, Puerto Rico
Mexico*
N.A. Retail Banking(2) Retail Distribution(3) Commercial Business(4) Prime Home Finance(5) Student Loans(6) Primerica Financial Services
Mexico*
N.A. Consumer Finance(7) CitiFinancial Branches(8) CitiFinancial Auto(9) Home Equity
Mexico*
U.S. Cards(1) U.S., Canada, Puerto Rico
U.S. Retail Distribution(2) Citibank Branches(7) CitiFinancial Branches(6) Primerica Financial Services
U.S. Consumer Lending(4,9) Real Estate(8) Auto(5) Student Loans
*Mexico is now reported in International Consumer results.
Prior Disclosure New Disclosure
(3) U.S. Commercial Business
Quarterly Financial Data SupplementGlobal Consumer Group
N.A. Cards(1) U.S., Canada, Puerto Rico
Mexico*
N.A. Retail Banking(2) Retail Distribution(3) Commercial Business(4) Prime Home Finance(5) Student Loans(6) Primerica Financial Services
Mexico*
N.A. Consumer Finance(7) CitiFinancial Branches(8) CitiFinancial Auto(9) Home Equity
Mexico*
U.S. Cards(1) U.S., Canada, Puerto Rico
U.S. Retail Distribution(2) Citibank Branches(7) CitiFinancial Branches(6) Primerica Financial Services
U.S. Consumer Lending(4,9) Real Estate(8) Auto(5) Student Loans
*Mexico is now reported in International Consumer results.
Prior Disclosure New Disclosure
(3) U.S. Commercial Business
Quarterly Financial Data SupplementGlobal Consumer Group
International Cards• The same, plus Mexico
International Cards
International Retail Banking
International Consumer Finance
International Retail Banking• The same, plus Mexico
International Consumer Finance• The same, plus Mexico• Additional regional disclosure
International Cards• The same, plus Mexico
International Cards
International Retail Banking
International Consumer Finance
International Retail Banking• The same, plus Mexico
International Consumer Finance• The same, plus Mexico• Additional regional disclosure
CITIGROUP - QUARTERLY FINANCIAL DATA SUPPLEMENT 4Q05
Total Assets, at period end (in billions) 1,317.6$ 1,396.6$ 1,436.6$ 1,484.1$ 1,489.9$ 1,547.8$ 1,472.8$ 1,494.0$ * 1,484.1$ 1,494.0$ *Stockholders' Equity, at period end (in billions) 101.9$ 98.3$ 103.4$ 109.3$ 110.5$ 113.0$ 111.8$ 112.5$ * 109.3$ 112.5$ *
Equity and Trust Securities, at period end (in billions) 108.2$ 104.5$ 110.2$ 115.5$ 116.9$ 119.5$ 118.2$ 118.8$ * 115.5$ 118.8$ *
Book Value Per Share, at period end 19.48$ 18.76$ 19.70$ 20.82$ 21.03$ 21.65$ 21.88$ 22.37$ * 20.82$ 22.37$ *
Return on Common Equity (Net Income) 21.3% 4.6% 21.3% 20.1% 20.3% 18.4% 25.4% 25.0% 17.0% 22.3%
Return on Risk Capital (Income from Continuing Operations) 46% 8% 42% 43% 40% 36% 37% 37% 35% 38%
* Preliminary
corporations, governments and institutions a complete range of financial products and services.Citigroup, the leading global financial services company, has more than 200 million customer accounts and does business in more than 100 countries, providing consumers,
Page 1
CITIGROUP -- NET INCOMEPRODUCT VIEW(In millions of dollars)
4Q 2005 vs. Full Full YTD 2005 vs.1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 4Q 2004 Increase/ Year Year YTD 2004 Increase/
Net Income 5,273$ 1,144$ 5,308$ 5,321$ 5,441$ 5,073$ 7,143$ 6,932$ 30% 17,046$ 24,589$ 44%
(1) U.S. disclosure includes Canada and Puerto Rico.
(2) The 2004 second quarter includes a $756 million after-tax gain ($378 million in Consumer Other and $378 million in CIB Other) related to the sale of The Samba Financial Group (Samba).
(3) The 2004 second quarter includes a $4.95 billion after-tax charge related to the WorldCom Settlement and increase in Litigation Reserves.
(4) The 2005 fourth quarter includes a $375 million after-tax release of WorldCom Settlement and Litigation Reserves.
(5) The 2004 fourth quarter includes a $244 million after-tax charge related to the exit plan implementation for the Company's Private Bank operations in Japan.
(6) Discontinued Operations includes the operations from the Company's January 31, 2005 announced agreement for the sale of Citigroup's Travelers Life & Annuity, and substantially all of Citigroup's
international insurance business, to MetLife, Inc. The transaction closed during the 2005 third quarter and resulted in a $3.4 billion ($2.1 billion after-tax) gain.
(7) Discontinued Operations includes the operations from the Company's June 24, 2005 announced agreement for the sale of substantially all of Citigroup's Asset Management business to Legg Mason, Inc.
The transaction closed during the 2005 fourth quarter and resulted in a $3.4 billion ($2.1 billion after-tax) gain.
(8) Cumulative Effect of Accounting Change represents the adoption of FIN 47, "Accounting for Conditional Asset Retirement Obligations, an interpretation of SFAS No. 143".
This pronouncement is applicable to real estate leasing agreements that required Citigroup to restore the leased space back to its original condition upon termination
the lease.
NM Not meaningful
Reclassified to conform to the current period's presentation.
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CITIGROUP -- NET INCOMEREGIONAL VIEW(In millions of dollars)
4Q 2005 vs. Full Full YTD 2005 vs.1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 4Q 2004 Increase/ Year Year YTD 2004 Increase/
Net Income 5,273$ 1,144$ 5,308$ 5,321$ 5,441$ 5,073$ 7,143$ 6,932$ 30% 17,046$ 24,589$ 44%
Total International 1,930$ 2,838$ 2,007$ 1,745$ 1,771$ 2,018$ 2,140$ 2,217$ 27% 8,520 8,146 (4%)
(1) Excludes Alternative Investments and Corporate / Other which are predominantly related to the U.S. The U.S. regional disclosure includes Canada and Puerto Rico. Global Consumer for the U.S includes Other Consumer (except for Samba in 2Q04 which is allocated to EMEA).
NM Not meaningful
Reclassified to conform to the current period's presentation. Page 3
CITIGROUP -- NET REVENUESPRODUCT VIEW(In millions of dollars)
4Q 2005 vs. Full Full YTD 2005 vs.1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 4Q 2004 Increase/ Year Year YTD 2004 Increase/
Total Net Revenues 19,932$ 20,855$ 18,738$ 20,110$ 21,196$ 20,169$ 21,498$ 20,779$ 3% 79,635$ 83,642$ 5%
Total International 7,435$ 8,427$ 7,314$ 7,945$ 7,917$ 7,991$ 8,508$ 8,998$ 13% 31,121 33,414 7%
(1) Excludes Alternative Investments and Corporate / Other which are predominantly related to the U.S. The U.S. regional disclosure includes Canada and Puerto Rico. Global Consumer for the U.S includes Other Consumer (except for Samba in 2Q04 which is allocated to EMEA).
NM Not meaningful
Reclassified to conform to the current period's presentation.Page 5
CITIGROUP CONSOLIDATED STATEMENT OF INCOME(In millions of dollars)
4Q 2005 vs. Full Full YTD 2005 vs.1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 4Q 2004 Increase/ Year Year YTD 2004 Increase/
Net Income 5,273$ 1,144$ 5,308$ 5,321$ 5,441$ 5,073$ 7,143$ 6,932$ 30% 17,046$ 24,589$ 44%
(1) Discontinued Operations includes the operations from the Company's January 31, 2005 announced agreement for the sale of Citigroup's Travelers Life & Annuity, and substantially all of Citigroup's international insurance business, to MetLife, Inc. The transaction closed during the 2005 third quarter and resulted in a $3.4 billion ($2.1 billion after-tax) gain.
(2) Discontinued Operations includes the operations from the Company's June 24, 2005 announced agreement for the sale of substantially all of Citigroup's Asset Management business to Legg Mason, Inc. The transaction closed during the 2005 fourth quarter and resulted in a $3.4 billion ($2.1 billion after-tax) gain.
(3) Cumulative Effect of Accounting Change represents the adoption of FIN 47, "Accounting for Conditional Asset Retirement Obligations, an interpretation of SFAS No. 143".This pronouncement is applicable to real estate leasing agreements that required Citigroup to restore the leased space back to its original condition upon termination the lease.
NM Not meaningful
Reclassified to conform to the current period's presentation.
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CITIGROUP CONSOLIDATED BALANCE SHEET(In millions of dollars)
December 31, 2005vs.
March 31, June 30, September 30, December 31, March 31, June 30, September 30, December 31, December 31, 20042004 2004 2004 2004 2005 2005 2005 2005 (1) Inc (Decr)
AssetsCash and due from banks (including segregated cash and other deposits) 23,104$ 26,462$ 25,483$ 23,556$ 25,620$ 28,942$ 28,438$ 28,373$ 20%Deposits at interest with banks 23,104 24,710 23,407 23,889 28,568 31,322 30,604 26,904 13%Federal funds sold and securities borrowed or purchased under agreements to resell 184,089 194,594 208,159 200,739 202,099 232,369 236,105 217,464 8%Brokerage receivables 35,159 41,494 37,987 39,273 40,747 42,977 42,006 42,823 9%Trading account assets 232,227 245,037 264,227 280,167 272,841 281,035 293,416 295,820 6%Investments 203,311 205,245 205,632 213,243 167,589 165,587 165,905 180,597 (15%)Loans, net of unearned income
Total liabilities and stockholders' equity 1,317,591$ 1,396,568$ 1,436,554$ 1,484,101$ 1,489,891$ 1,547,789$ 1,472,793$ 1,493,987$ 1% (1) Preliminary.
(2) Includes allowance for credit losses for letters of credit and unfunded lending commitments of $600 million for the first, second, third and fourth quarters of 2004, respectively, and $600, $700, $800 and $850 million in the first, second, third and fourth quarters of 2005, respectively.
NM Not meaningful
Reclassified to conform to the current period's presentation.
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GLOBAL CONSUMER(In millions of dollars)
4Q 2005 vs. Full Full YTD 2005 vs.1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 4Q 2004 Increase/ Year Year YTD 2004 Increase/
Net Income (91)$ 304$ (62)$ (54)$ (176)$ (58)$ (64)$ (76)$ (41%) 97$ (374)$ NM
NM Not meaningful
Reclassified to conform to the current period's presentation.
Page 8
For your convenience, an excerpt from our 2005 fourth quarter earnings press release is set out below. The full text of the press release, and those from prior periods,
GLOBAL CONSUMER are available on Citigroup's website at www.citigroup.com.
U.S. ** Revenues declined, reflecting a $545 million pre-tax charge to conform accounting practice for customer rewards. Excluding the $545 million charge, revenues declined 7%, as the benefit
CARDS - Page 1 of a 9% increase in purchase sales was more than offset by higher payment rates and continued net interest margin compression. Revenues also reflect the negative impact of an increase
(In millions of dollars) in consumer bankruptcy filings due to new legislation, which resulted in approximately $120 million pre-tax of reduced interest and fee revenue.
** Credit costs include the impact of increased consumer bankruptcy filings due to new legislation, which added approximately $180 million pre-tax to held net credit losses, which was offset by
a $200 million pre-tax loan loss reserve release. Credit costs increased significantly versus the prior year due to the absence of a $420 million pre-tax release of loan loss reserves in the
prior-year period. Excluding the impact of increased bankruptcies, credit conditions remained stable during the quarter.
** On a managed basis, net credit losses due to new bankruptcy legislation were approximately $600 million pre-tax.
4Q 2005 vs. Full Full YTD 2005 vs.1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 4Q 2004 Increase/ Year Year YTD 2004 Increase/
End of Period Managed Loans:Bankcards 109.8$ 110.3$ 112.2$ 118.1$ 111.9$ 110.2$ 109.1$ 113.7$ (4%)Private Label 25.2 25.8 26.0 26.1 24.7 25.2 25.6 27.9 7%
Total 135.0$ 136.1$ 138.2$ 144.2$ 136.6$ 135.4$ 134.7$ 141.6$ (2%)
(1) The 2005 first quarter, 2005 second quarter, 2005 third quarter and 2005 fourth quarter include releases of $129 million, $102 million, $137 million and $186 million, respectivelyfrom the allowance for credit losses related to loan receivables that were securitized during the quarter.
(2) Managed basis presentation includes results from both the on-balance sheet loans and off- balance sheet loans, and exclude the impact of card securitization activity.Managed disclosures assume that securitized loans have not been sold and present the results of the securitized loans in the same manner as the Company's owned loans.
Reclassified to conform to the current period's presentation. Page 9
(1) Managed basis presentation includes results from both the on-balance sheet loans and off- balance sheet loans, and exclude the impact of card securitization activity.Managed disclosures assume that securitized loans have not been sold and present the results of the securitized loans in the same manner as the Company's owned loans.
(2) Purchase Sales represents customers' purchased sales plus cash advances.
(3) Gross interest revenue earned divided by average managed loans.
(4) Includes certain fees that are recorded as interest revenue.
(5) Total Revenues, net of Interest Expense, less Net Credit Losses.
Reclassified to conform to the current period's presentation.Page 10
For your convenience, an excerpt from our 2005 fourth quarter earnings press release is set out below. The full text of the press release, and those from prior periods,
GLOBAL CONSUMER are available on Citigroup's website at www.citigroup.com.
U.S. ** Revenues were even with the prior year period as 4% deposit growth and 7% loan growth were offset by continued net interest margin compression. Revenues include a $20 million
RETAIL DISTRIBUTION - Page 1 pre-tax charge to conform accounting practice for customer rewards.
(In millions of dollars) ** Credit costs reflect an increase in consumer bankruptcy filings due to new legislation, which resulted in approximately $93 million
pre-tax of additional net credit losses and a $42 million pre-tax charge to increase loan loss reserves. Excluding the impact of increased bankruptcy filings, credit conditions remained favorable.
** Net income decline also reflects the absence of tax benefits recorded in the prior-year period.
4Q 2005 vs. Full Full YTD 2005 vs.1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 4Q 2004 Increase/ Year Year YTD 2004 Increase/
Checking Accounts (in millions ) 3.3 3.3 3.3 3.3 3.5 3.5 3.5 3.5 6%
EOP Investment AUMs (in billions of dollars) 38.0$ 38.4$ 38.0$ 40.6$ 39.8$ 40.7$ 41.6$ 42.5$ 5%
Total Investment Product Sales (in billions of dollars) 2.9$ 2.5$ 2.8$ 2.9$ 3.1$ 3.0$ 3.2$ 3.0$ 3%
Primerica Financial Services:Life Insurance in Force (in billions of dollars) 510.7$ 522.0$ 534.2$ 545.4$ 553.1$ 562.7$ 572.4$ 581.3$ 7%Loan Volumes (in millions of dollars) 749.3$ 1,104.0$ 961.0$ 987.0$ 972.8$ 963.6$ 1,099.9$ 1,381.4$ 40%Mutual Fund Sales at NAV (in millions of dollars) 927$ 861$ 768$ 769$ 903$ 865$ 798$ 791$ 3%Variable Annuity Net Written Premiums & Deposits (in millions of dollars) 296$ 263$ 258$ 278$ 328$ 271$ 283$ 302$ 9%Investment AUMs (EOP) (in millions of dollars) 25.5$ 25.7$ 25.7$ 27.9$ 27.5$ 28.0$ 29.3$ 30.1$ 8%
Reclassified to conform to the current period's presentation.
Page 12
For your convenience, an excerpt from our 2005 fourth quarter earnings press release is set out below. The full text of the press release, and those from prior periods,
GLOBAL CONSUMER are available on Citigroup's website at www.citigroup.com.
U.S. ** Revenues and net income growth reflected 17% growth in average loans and improved net mortgage servicing revenues, which were partially offset by continued net interest margin compression.
CONSUMER LENDING - Page 1 ** Originations increased 22%, reflecting strong volume growth across all loan products.
(In millions of dollars) ** Credit conditions remained favorable, leading to a decline in net credit loss ratios.
4Q 2005 vs. Full Full YTD 2005 vs.1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 4Q 2004 Increase/ Year Year YTD 2004 Increase/
Originations 24.8$ 33.6$ 27.2$ 29.7$ 25.9$ 33.3$ 37.0$ 35.7$ 20%Third Party Mortgage Servicing Portfolio (EOP) 174.5$ 170.1$ 297.5$ 291.3$ 288.8$ 287.2$ 293.5$ 293.8$ 1%Net Servicing & Gain/(Loss) on Sale - (in millions of dollars) 107.1$ (84.0)$ 25.8$ (48.5)$ 82.3$ 82.3$ 51.9$ 77.1$ NM
Net Interest Revenue - (in millions of dollars) 754$ 800$ 766$ 792$ 831$ 793$ 774$ 815$ 3%NIR as a % of Average Loans 3.14% 3.13% 2.77% 2.69% 2.76% 2.51% 2.32% 2.29%
Net Credit Loss Ratio 0.37% 0.29% 0.28% 0.22% 0.23% 0.19% 0.17% 0.16%
Loans 90+Days Past Due - (in millions of dollars) 1,822$ 1,627$ 2,066$ 2,078$ 1,911$ 1,672$ 1,697$ 1,766$ (15%)% of EOP Loans 1.83% 1.51% 1.82% 1.72% 1.54% 1.31% 1.24% 1.22%
Student Loans - Balances (in billions of dollars):
Net Interest Revenue - (in millions of dollars) 139$ 145$ 148$ 147$ 134$ 129$ 121$ 109$ (26%)NIR as a % of Average Loans (1) 2.28% 2.38% 2.34% 2.26% 2.03% 1.90% 1.79% 1.62%
Net Credit Loss Ratio (1) 0.04% 0.06% 0.02% 0.03% 0.02% 0.08% 0.03% 0.07%
Loans 90+Days Past Due - (in millions of dollars) 706$ 738$ 711$ 696$ 773$ 792$ 814$ 743$ 7%% of EOP Loans (1) 2.89% 2.99% 2.72% 2.72% 2.84% 3.02% 3.06% 2.86%
Net Interest Revenue - (in millions of dollars) 310$ 310$ 292$ 313$ 308$ 305$ 314$ 298$ (5%)NIR as a % of Average Loans 12.47% 12.10% 10.96% 11.42% 11.36% 10.73% 10.47% 9.61%
Net Credit Margin (NCM) - (in millions of dollars) 179$ 212$ 178$ 190$ 204$ 231$ 213$ 191$ 1%NCM as a % of Average Loans 7.20% 8.28% 6.68% 6.93% 7.52% 8.13% 7.10% 6.16%
Net Credit Loss Ratio 5.59% 4.02% 4.54% 4.85% 4.17% 2.81% 3.70% 3.74%
Loans 90+Days Past Due - (in millions of dollars) 108$ 88$ 108$ 114$ 74$ 75$ 97$ 115$ 1%% of EOP Loans 1.07% 0.84% 1.01% 1.04% 0.66% 0.65% 0.80% 0.93%
(1) includes approximately $2 billion of Loans Held For Sale each quarte
NM Not meaningful
Reclassified to conform to the current period's presentation.
Page 14
For your convenience, an excerpt from our 2005 fourth quarter earnings press release is set out below. The full text of the press release, and those from prior periods,
GLOBAL CONSUMER are available on Citigroup's website at www.citigroup.com.
U.S. ** Revenues and net income reflected growth in core loan and deposit balances, up 20% and 27%, respectively, which was more than offset by net interest spread compression
COMMERCIAL BUSINESS and the impact of portfolio divestitures during 2005.
(In millions of dollars) ** Credit costs declined, reflecting the continued favorable credit environment.
4Q 2005 vs. Full Full YTD 2005 vs.1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 4Q 2004 Increase/ Year Year YTD 2004 Increase/
Reclassified to conform to the current period's presentation.
Page 15
For your convenience, an excerpt from our 2005 fourth quarter earnings press release is set out below. The full text of the press release, and those from prior periods,
GLOBAL CONSUMER are available on Citigroup's website at www.citigroup.com.
INTERNATIONAL ** Revenue and pre-tax income growth, up 19% and 20% respectively, reflected a 15% increase in average loans, with strong organic loan growth in Mexico, Asia
CARDS - Page 1 and Latin America, and net interest margin expansion. Taxes increased due to the absence of tax benefits recorded in the prior-year period.
(In millions of dollars) ** Results included an $89 million pre-tax gain on the sale of European Card Acceptance, a merchant acquiring business in EMEA, and the absence of a
$42 million pre-tax gain on the sale of Orbitall recorded in the prior-year period in Latin America.
Net Interest Revenue (in millions of dollars) 569$ 559$ 597$ 629$ 647$ 673$ 710$ 746$ 19%% of Average Loans 13.54% 12.56% 12.84% 12.33% 12.26% 12.16% 12.41% 12.65%
Net Credit Margin (in millions of dollars) (1) 795$ 839$ 840$ 989$ 945$ 1,019$ 1,041$ 1,178$ 19%% of Average Loans 18.92% 18.85% 18.06% 19.38% 17.91% 18.41% 18.19% 19.97%
End of Period Loans 16.9$ 18.3$ 19.1$ 21.4$ 21.6$ 22.5$ 23.1$ 24.1$ 13%EOP Open Accounts (in millions) 19.6 24.5 24.8 24.7 25.2 25.9 26.5 26.5 7%Purchase Sales (2) 12.8$ 14.2$ 15.0$ 17.1$ 16.1$ 17.1$ 17.3$ 18.2$ 6%
Total 16.9$ 17.9$ 18.5$ 20.3$ 21.4$ 22.2$ 22.7$ 23.4$ 15%
Coincident Net Credit Loss Ratio 3.60% 3.06% 3.76% 2.95% 3.02% 2.84% 2.94% 3.08%12 Month Lagged Net Credit Loss Ratio 4.55% 3.98% 4.74% 3.71% 3.83% 3.51% 3.61% 3.56%
Loans 90+Days Past Due (in millions of dollars) 301$ 287$ 304$ 345$ 354$ 382$ 411$ 469$ 36%% of EOP Loans 1.78% 1.57% 1.60% 1.61% 1.64% 1.70% 1.78% 1.95%
(1) Total Revenues, net of Interest Expense, less Net Credit Losses.
(2) Purchase Sales represents customers' purchased sales plus cash advances.
Reclassified to conform to the current period's presentation.
Page 17
For your convenience, an excerpt from our 2005 fourth quarter earnings press release is set out below. The full text of the press release, and those from prior periods,
GLOBAL CONSUMER are available on Citigroup's website at www.citigroup.com.
INTERNATIONAL ** In Japan, income growth was primarily driven by lower expenses and reduced credit costs. During the quarter, 28 new automated loan machines (ALMs) were added. During 2005,
CONSUMER FINANCE - Page 1 the repositioning of the business continued as 170 ALMs were added and 80 branches were closed.
(In millions of dollars) ** Outside of Japan, revenues and net income increased 14% and 1%, respectively, as the benefit of growth in loan balances was partially offset by increased investment spending.
During the quarter, 97 new branches were opened outside of Japan.
** Average loans decreased 3%, reflecting a decline in Japan of 14% and growth outside of Japan of 7%.
** Credit conditions remained favorable, leading to a 34 basis point decline in the NCL ratio to 5.62%.
4Q 2005 vs. Full Full YTD 2005 vs.1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 4Q 2004 Increase/ Year Year YTD 2004 Increase/
Average Loans (in billions of dollars):Real estate secured loans 6.7$ 6.7$ 7.2$ 8.1$ 8.3$ 8.1$ 8.0$ 8.2$ 1%Personal loans 12.7 12.3 12.2 13.0 13.0 12.9 12.8 12.8 (2%)
Auto 1.4 1.2 1.0 0.9 0.8 0.6 0.5 0.4 (56%)Sales finance and other 1.1 0.9 0.8 0.9 0.7 0.8 0.6 0.7 (22%)
Total 21.9$ 21.1$ 21.2$ 22.9$ 22.8$ 22.4$ 21.9$ 22.1$ (3%)
Average Yield 17.93% 18.55% 18.50% 18.33% 18.31% 18.90% 18.87% 18.63%
Net Interest Revenue - (in millions of dollars) 883$ 892$ 889$ 935$ 920$ 930$ 910$ 914$ (2%)Net Interest Revenue as a % of Average Loans 16.22% 17.00% 16.68% 16.24% 16.36% 16.65% 16.49% 16.41%
Net Credit Margin (NCM) - (in millions of dollars) 547$ 563$ 570$ 615$ 632$ 642$ 617$ 645$ 5%NCM as a % of Average Loans 10.05% 10.73% 10.70% 10.68% 11.24% 11.50% 11.18% 11.58%
Net Credit Loss Ratio 6.37% 6.63% 6.55% 5.96% 5.62% 5.75% 6.03% 5.62%
Loans 90+ Days Past Due - (in millions of dollars) 543$ 509$ 464$ 494$ 480$ 477$ 467$ 442$ (11%)% of EOP Loans 2.46% 2.38% 2.17% 2.13% 2.12% 2.17% 2.13% 2.03%
Total 1,484 1,539 1,632 1,671 1,751 1,881 2,014 2,137 28%
Japan:Average Loans (in billions of dollars) 11.9$ 11.4$ 10.8$ 11.2$ 10.9$ 10.5$ 10.0$ 9.6$ (14%)
Net Credit Loss Ratio 10.08% 10.45% 10.99% 10.36% 9.25% 9.68% 9.77% 9.92%
Net Income (in millions of dollars) 81$ 88$ 95$ 98$ 122$ 137$ 122$ 124$ 27%
NM Not meaningful
Reclassified to conform to the current period's presentation.
Page 19
For your convenience, an excerpt from our 2005 fourth quarter earnings press release is set out below. The full text of the press release, and those from prior periods,
GLOBAL CONSUMER are available on Citigroup's website at www.citigroup.com.
INTERNATIONAL ** Revenue growth reflected a 5% increase in deposits and 28% growth in sales of investment products. Loan balances were even with the prior-year period, as a decline in EMEA
RETAIL BANKING - Page 1 due to loan write-offs in the third quarter 2005 offset growth in other regions.
(In millions of dollars) ** Expenses included continued investment spending, with 88 new branch openings during the quarter, and increased marketing and advertising.
** Net credit losses increased, primarily due to the impact of standardizing the loan write-off policy in EMEA in the third quarter 2005 and portfolio growth in Mexico.
4Q 2005 vs. Full Full YTD 2005 vs.1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 4Q 2004 Increase/ Year Year YTD 2004 Increase/
Net Credit Loss Ratio 1.14% 1.21% 1.09% 1.15% 1.17% 1.17% 8.20% 1.53%
Loans 90+Days Past Due (in millions of dollars) 2,087$ 2,070$ 1,974$ 2,086$ 2,013$ 1,901$ 770$ 779$ % of EOP Loans 4.70% 3.71% 3.47% 3.36% 3.26% 3.09% 1.26% 1.29%
Branches by Region:Mexico 1,357 1,347 1,347 1,349 1,346 1,334 1,335 1,382 EMEA 596 599 604 606 612 619 618 625 Japan 25 25 25 25 25 25 25 25 Asia (excluding Japan) 106 341 342 347 354 394 396 401 Latin America 141 145 147 151 153 158 162 176
Total 2,225 2,457 2,465 2,478 2,490 2,530 2,536 2,609
NM Not meaningful
Reclassified to conform to the current period's presentation.
Page 20
GLOBAL CONSUMERINTERNATIONALRETAIL BANKING - Page 2
(1) Capital Markets and Banking revenues reflect Citigroup's portion (49%) of the results of the Nikko Citigroup Joint Venture on each respective line with an offset inOther Capital Markets and Banking to conform to the GAAP presentation.
(2) The 2004 second quarter includes a $584 million gain related to the sale of Samba.
Reclassified to conform to the current period's presentation.
Page 23
For your convenience, an excerpt from our 2005 fourth quarter earnings press release is set out below. The full text of the press release, and those from prior periods,
CORPORATE AND INVESTMENT BANKING are available on Citigroup's website at www.citigroup.com.
CAPITAL MARKETS AND BANKING ** Fixed income markets revenues decreased 9%, reflecting lower results in commodities and structured corporate finance.
(In millions of dollars) ** Equity markets revenues increased 39%, driven by improved performance and growth in cash trading, derivatives, and structured products.
** Investment banking revenues increased 3%, as record advisory revenues, up 25%, were offset by a decline in debt and equity underwriting.
** Lending revenues increased 31%, driven by hedging gains in credit derivatives.
** Results include a $386 million pre-tax gain on the sale of Nikko Cordial shares and a $160 million pre-tax charge to increase reserves for previously disclosed legal matters.
** Credit costs increased $105 million, due to a $79 million pre-tax charge to increase loan loss reserves and the absence of a $131 million pre-tax loan loss reserve release
in the fourth quarter of 2004, partially offset by increased credit recoveries. The increase in loan loss reserves reflected growth in unfunded commitments and
direct outstandings.
4Q 2005 vs. Full Full YTD 2005 vs.1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 4Q 2004 Increase/ Year Year YTD 2004 Increase/
(1) Full credit to book manager. Market volumes and shares sourced from Thomson Financial Securities Data.
Reclassified to conform to the current period's presentation.
Page 24
For your convenience, an excerpt from our 2005 fourth quarter earnings press release is set out below. The full text of the press release, and those from prior periods,
CORPORATE AND INVESTMENT BANKING are available on Citigroup's website at www.citigroup.com.
TRANSACTION SERVICES ** Record revenues, up 19%, were driven by higher customer volumes, reflecting increased liability balances held on behalf of customers, up 12%, (In millions of dollars) assets under custody, up 9%, and the positive impact of rising short-term interest rates.
** Expenses increased 18%, primarily due to the impact of new acquisitions, investment in organic growth opportunities, and an increase in new business volumes.
** Credit costs increased $43 million, reflecting the absence of a $19 million pre-tax loan loss reserve release recorded in the fourth quarter of 2004.
4Q 2005 vs. Full Full YTD 2005 vs.1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 4Q 2004 Increase/ Year Year YTD 2004 Increase/
Net Income (Loss) 96$ 81$ 62$ (209)$ 46$ 7$ 18$ 32$ NM 30$ 103$ NM
NM Not meaningful
Reclassified to conform to the current period's presentation.
Page 26
For your convenience, an excerpt from our 2005 fourth quarter earnings press release is set out below. The full text of the press release, and those from prior periods,
GLOBAL WEALTH MANAGEMENT are available on Citigroup's website at www.citigroup.com.
SMITH BARNEY ** A 19% increase in fee-based revenues was partially offset by a 4% decline in transactional revenues.
(In millions of dollars) ** Assets under fee-based management increased 34% to $321 billion, reflecting organic growth and the addition of Legg Mason. Net flows
were $4 billion for the quarter and $28 billion for the full year 2005.** The pre-tax margin of 19% declined, reflecting integration costs of the Legg Mason retail brokerage business and increased compensation
and compliance expenses.
4Q 2005 vs. Full Full YTD 2005 vs.1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 4Q 2004 Increase/ Year Year YTD 2004 Increase/
Total Smith Barney 220$ 222$ 221$ 240$ 239$ 245$ 258$ 321$ 34%
Reclassified to conform to the current period's presentation.
Page 27
For your convenience, an excerpt from our 2005 fourth quarter earnings press release is set out below. The full text of the press release, and those from prior periods,
GLOBAL WEALTH MANAGEMENT are available on Citigroup's website at www.citigroup.com.
PRIVATE BANK ** Revenues and expenses declined, primarily due to the absence of the Japan business, which ceased business operations at the end of September(In millions of dollars) 2005. Net income in the prior-year period included a $400 million pre-tax charge for costs related to closing the Japan business.
** Excluding Japan, revenues declined 1%, as client business volumes rose 8% to $226 billion, led by 14% growth in the U.S., which was offset by net interest margin compression.
** Excluding Japan, income declined 28%, reflecting higher costs of front office sales and support, higher credit costs, and the absence of tax benefits recorded in the prior-year period.
4Q 2005 vs. Full Full YTD 2005 vs.1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 4Q 2004 Increase/ Year Year YTD 2004 Increase/
Net Credit Loss Ratio 0.04% (0.01%) (0.08%) (0.01%) (0.05%) (0.05%) (0.01%) 0.04%
(1) The 2004 fourth quarter includes a $244 million after-tax ($400 million pretax) charge related to the exit plan implementation for the Company's Private Bank operations in Japan.
(2) Includes treasury revenue, which was previously disclosed separately.
NM Not meaningful
Reclassified to conform to the current period's presentation.
Page 28
For your convenience, an excerpt from our 2005 fourth quarter earnings press release is set out below. The full text of the press release, and those from prior periods,
ALTERNATIVE INVESTMENTS (1) are available on Citigroup's website at www.citigroup.com.
(In millions of dollars) ** Revenues and net income growth was driven by increased realized gains on proprietary investments and fees on client-managed funds, partially
offset by lower results in private equity.
4Q 2005 vs. Full Full YTD 2005 vs.1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 4Q 2004 Increase/ Year Year YTD 2004 Increase/
Income Before Taxes and Minority Interest 441 359 358 288 483 493 3,435 3,287 NM 1,446 7,698 NM
Income Taxes 127 132 76 110 156 152 1,280 1,278 NM 445 2,866 NMMinority Interest, Net of Tax 5 (1) - 5 1 (1) - - (100%) 9 - (100%)
Net Income 309$ 228$ 282$ 173$ 326$ 342$ 2,155$ 2,009$ NM 992$ 4,832$ NM
(1) Discontinued Operations includes the operations from the Company's January 31, 2005 announced agreement for the sale of Citigroup's Travelers Life & Annuity, and substantially all of Citigroup's international insurance business, to MetLife, Inc. The transaction closed during the 2005 third quarter and resulted in a $3.4 billion ($2.1 billion after-tax) gain.
(2) Discontinued Operations includes the operations from the Company's June 24, 2005 announced agreement for the sale of substantially all of Citigroup's Asset Management business to Legg Mason, Inc.
The transaction closed during the 2005 fourth quarter and resulted in a $3.4 billion ($2.1 billion after-tax) gain.
NM Not meaningful
Reclassified to conform to the current period's presentation.
Page 30
CITIGROUP -- RETURN ON CAPITAL (1)
Fourth Third Fourth Fourth Third Fourth Fourth Third FourthQuarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter
Total Citigroup - Risk Capital (Continuing Operations) (2) (3) 47,617$ 53,586$ 53,157$ 43% 37% 37%
Total Citigroup - Return on Invested Capital (Net Income) (2) (4) 20% 25% 25%
(1) Risk Capital is defined as the amount of capital needed to cover unexpected economic losses during extreme events. Return on Risk Capital is defined as income divided by Risk
Capital. Return on Invested Capital is a similar calculation but includes adjustments for goodwill and intangibles in both the numerator and denominator, similar to those necessary
to translate return on tangible equity to return on total equity. Return on Risk Capital and Return on Invested Capital are non-GAAP performance measures. Management believes
Return on Risk Capital is useful to make incremental investment decisions and serves as a key metric for organic growth initiatives. Return on Invested Capital is used for multi-year
investment decisions and as a long term performance measure.
(2) Average Risk Capital is net of the cross-sector diversification. Average Invested Capital includes the difference between Tangible Equity and Risk Capital, which is also included
in the Total Citigroup Return on Invested Capital.
(3) On a Continuing Operations Basis. See Notes 6 and 7 on page 2.
(4) Total Citigroup Return on Invested Capital equals Citigroup Return on Common Equity.
NM Not meaningful
Reclassified to conform to the current period's presentation.
Average Risk Capital ($M) (2) Return on Risk Capital Return on Invested Capital
Page 31
CONSUMER LOAN DELINQUENCY AMOUNTS, NET CREDIT LOSSES AND RATIOS(In millions of dollars, except loan amounts in billions)
(1) The ratios of 90 days or more past due and net credit losses are calculated based on end-of-period and average loans, respectively, both net of unearned income.
(2) Total Loans and Total Average Loans exclude certain interest and fees on credit cards of approximately $4 billion and $4 billion, respectively, which are included in Consumer Loans on the Consolidated Balance Sheet.
(3) This table presents consumer credit information on a held basis and shows the impact of securitizations to reconcile to a managed basis. Only U.S. Cards from a productview and North America from a regional view are impacted. Managed basis reporting is a non-GAAP measure. Held basis reporting is the related GAAP measure. For a discussion ofmanaged basis reporting see the Cards business on page 9.
Reclassified to conform to the current period's presentation.
Managed Loans (3)
On-Balance Sheet Loans (2)
90 Days Or More Past Due (1) Net Credit Losses (1)
On-Balance Sheet Loans (2)
Managed Loans (3)
Page 32
ALLOWANCE FOR CREDIT LOSSESTOTAL CITIGROUP(In millions of dollars)
4Q 2005 vs. Full Full YTD 2005 vs.1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 4Q 2004 Increase/ Year Year YTD 2004 Increase/
Total Allowance for Loans, Leases and Unfunded Lending Commitments 13,106$ 13,315$ 12,634$ 11,869$ 11,494$ 11,118$ 10,815$ 10,632$ 11,869$ 10,632$
Total Allowance for Loans, Leases and Unfunded Lending
Commitments as a Percentage of Total Loans 2.71% 2.60% 2.43% 2.16% 2.10% 2.00% 1.91% 1.81%
(1) Allowance for Credit Losses represents management's estimate of probable losses inherent in the portofolio. Attribution of the allowance is made for
analytical purposes only, and the entire allowance is available to absorb probable credit losses inherent in the portfolio.
(2) Includes all adjustments to the Allowance for Credit Losses, such as changes in the allowance from acquisitions, securitizations, foreign exchange translation, purchase
accounting adjustments, etc. The significant items reported on this line for the periods presented include:
- For the 2005 fourth quarter, reductions to the credit loss reserves of $186 million related to securitizations.
- For the 2005 third quarter, reductions to the credit loss reserves of $137 million related to securitizations.
- The 2005 third quarter includes the reclassification from Other Assets of $23 million of credit loss reserves related to the purchase of distressed loans.
- For the 2005 second quarter, reductions to the credit loss reserves consisted of $132 million related to securitizations and portfolio sales, $110 million of purchase accounting
adjustments related to the KorAm acquisition, and a $79 million reclass to a non-credit related reserve.
- For the 2005 first quarter, reductions to the credit loss reserves of $129 million related to securitizations and $90 million from the sale of CitiCapital's transportation portfolio. - For the second quarter 2004, the addition of $715 million of credit loss reserves from the acquisition of KorAm Bank. - For the 2004 first quarter, the addition of $148 million of credit loss reserves related to the acquisition of Washington Mutual Finance Corporation.
(3) Represents additional credit reserves recorded as other liabilities on the Consolidated Balance Sheet.
NM Not meaningfulPage 33
ALLOWANCE FOR CREDIT LOSSESCONSUMER LOANS (1)
(In millions of dollars)
4Q 2005 vs. Full Full YTD 2005 vs.1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 4Q 2004 Increase/ Year Year YTD 2004 Increase/
Allowance for Credit Losses at End of Period 9,218$ 9,316$ 8,894$ 8,379$ 8,060$ 7,714$ 7,226$ 6,922$ 8,379$ 6,922$
Net Consumer Credit (Losses) as a Percentage of Average Consumer Loans 2.45% 2.22% 1.93% 1.97% 1.83% 1.68% 2.68% 1.82%
Consumer Allowance for Credit Losses
As a Percentage of Total Consumer Loans 2.40% 2.34% 2.18% 1.93% 1.87% 1.78% 1.64% 1.52%
(1) Includes loans made to Global Wealth Management clients.
(2) Allowance for Credit Losses represents management's estimate of probable losses inherent in the portofolio. Attribution of the allowance is made for
analytical purposes only, and the entire allowance is available to absorb probable credit losses inherent in the portfolio.
(3) Includes all adjustments to the Allowance for Credit Losses, such as changes in the allowance from acquisitions, securitizations, foreign exchange translation, purchase
accounting adjustments, etc. The significant items reported on this line for the periods presented include:
- For the 2005 fourth quarter, reductions to the credit loss reserves of $186 million related to securitizations.
- For the 2005 third quarter, reductions to the credit loss reserves of $137 million related to securitizations.
- For the 2005 second quarter, reductions to the credit loss reserves consisted of $132 million related to securitizations and portfolio sales, $110 million of purchase accounting
adjustments related to the KorAm acquisition, and a $79 million reclass to a non-credit related reserve.
- For the 2005 first quarter, reductions to the credit loss reserves of $129 million related to securitizations and $90 million from the sale of CitiCapital's transportation portfolio.
- For the 2004 second quarter, the addition of $274 million of credit loss reserves from the acquisition of KorAm Bank.
- For the 2004 first quarter, the addition of $148 million of credit loss reserves related to the acquisition of Washington Mutual Finance Corporation.
NM Not meaningful
Page 34
ALLOWANCE FOR CREDIT LOSSESCORPORATE LOANS (1)
(In millions of dollars)
4Q 2005 vs. Full Full YTD 2005 vs.1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 4Q 2004 Increase/ Year Year YTD 2004 Increase/
Total Corporate Allowance for Loans, Leases and Unfunded Lending Commitments 3,888$ 3,999$ 3,740$ 3,490$ 3,434$ 3,404$ 3,589$ 3,710$ 3,490$ 3,710$
Total Allowance for Loans, Leases and Unfunded Lending
Commitments as a Percentage of Total Corporate Loans 3.87% 3.54% 3.33% 3.07% 2.92% 2.75% 2.84% 2.82%
(1) Includes Loans related to the Alternative Investments and Corporate / Other segments.
(2) Allowance for Credit Losses represents management's estimate of probable losses inherent in the portofolio. Attribution of the allowance is made for
analytical purposes only, and the entire allowance is available to absorb probable credit losses inherent in the portfolio.
(3) Includes all adjustments to the Allowance for Credit Losses, such as changes in the allowance from acquisitions, securitizations, foreign exchange translation, purchase
accounting adjustments, etc. The significant items reported on this line for the periods presented include:
- The 2005 third quarter includes the reclassification from Other Assets of $23 million of credit loss reserves related to the purchase of distressed loans.
- The 2004 second quarter includes the addition of $441 million of credit loss reserves related to the acquisition of KorAm Bank.
(4) Represents additional credit reserves recorded as other liabilities on the Consolidated Balance Sheet.
NM Not meaningfulPage 35
NON-PERFORMING ASSETS (In millions of dollars)
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
2004 2004 2004 2004 2005 2005 2005 2005
CASH-BASIS AND RENEGOTIATED LOANSCorporate Cash-Basis LoansCollateral Dependent (at lower of cost or collateral value) 71$ 59$ 15$ 7$ 8$ 8$ 6$ 6$ Other 2,842 2,560 2,185 1,899 1,724 1,588 1,204 998
(1) Excludes purchased distressed loans that are accreting interest. The carrying value of these loans was: $1,292 million at March 31, 2004, $1,067 million at June 30, 2004,
$1,150 million at September 30, 2004, $1,213 million at December 31, 2004, $1,295 million at March 31, 2005, $1,148 million at June 30, 2005 $1,064 million at September 30, 2005 and $1,120 million at December 31, 2005.
(2) JENA includes Japan, Western Europe and North America.
(3) Other International includes Asia (excluding Japan), Mexico, Latin America, Central and Eastern Europe, the Middle East and Africa.
(4) Includes $227 million, $313 million, $248 million, $209 million, $189 million, $164 million and $137 million of cash-basis loans for KorAm at June 30, 2004, September 30, 2004, December 31, 2004, March 31, 2005, June
30, 2005, September 30, 2005 and December 31, 2005, respectively. The $27 million decrease from September 30, 2005, reflects the Company's ongoing review of KorAm's loan portfolio.
(5) Represents repossessed real estate, carried at lower of cost or fair value, less costs to sell.
(6) Primarily transportation equipment, carried at lower of cost or fair value, less costs to sell.